Chalco said in a statement filed with the Hong Kong Stock Exchange that it would purchase 1.13 billion shares of Winsway Coking Coal from Winsway Resources Holdings Ltd at HK$2.12 apiece, representing a premium of 22.54% over the closing price of HK$1.73 on Apr. 20.

Upon completion the deal, Chalco will become the biggest single shareholder of Winsway Coking Coal.

Chalco said that the takeover is expected to strengthen its downstream logistics operations and allow further integration of its investments in the coal sector, especially trading of coal from Mongolia and the proposed acquisition of SouthGobi Resources Ltd<1878>.